Avanti Screenmedia today announced an impressive 45% increase in turnover – though judging by the (money) market’s reaction and the share price you wouldn’t have believed it!
The preliminary results for the year ended 30 June 2007 are attached above.
To me, the results did not say anything that was not previously public knowlegde (and had all been reported here), which will have disappointed many retail and corporate investors.
Both the Chairman and the CEO’s statements in the results seeked to explain what a difficult year it has been for the business, what with the demerger, move of offices etc – all true I suspect but I stick to my guns with their business focus in that (a) it is great that they have Simon Rees on board who is the right person to drive the business forward but (b) they are trying to do too many things, spreading themselves far too thin and are trying to be all things to all people – network owner, national sales, local sales, retail, malls, music etc.
IMHO they need to figure out what they are best at (not music in a million years for example) where the most revenue and value add can be achieved and then focus on that.
Anyway the highlights from the press release were…
- Demerger of networks business completed in April 2007;
- Turnover increased by 45% (2007 – £4.54m, 2006 – £3.13m);
- New CEO, Simon Rees, appointed in June 2007;
- New strategy implemented;
- Successful fundraising in October 2007;
- Strong pipeline of national advertising sales; and
- Extension of key Mall contracts.